Slide background

Stay informed on the latest forest industry news and market insights.

F&W is committed to helping landowners get the most out of their timberland – one of the best tools is current and relevant information. Through the F&W Forestry Report, our clients and subscribers gain an insider’s view on the latest market conditions, timber prices and legislation affecting forestry. Each quarterly report is packed with insights gathered from our participation in professional associations, academic research cooperatives and everyday work in the forest to give you an edge in the marketplace.

Trade War Continues To Impact Forestry Sector

Trade War Continues To Impact Forestry Sector

While the U.S. economy is doing well overall, the trade war with China is causing distortions in the normal supply and demand curve for the forestry sector.

“Housing starts are trending upward, and it looks like 2019 will be more of a flat spot in the housing start curve than a downturn.  Interest rates are low and the housing forecast for 2020 is pretty good. So you’d think that stumpage prices would also trend upward,” writes Marshall Thomas, president of F&W Forestry Services, Inc., in his company’s winter newsletter.

But Thomas said the trade war with China has caused U.S. markets to be flooded with excess wood on top of already existing supply excesses.

While there has been a de-escalation of the trade war with the “phase one” agreement between the U.S. and China, the impact of the tariffs on the forest products sector has been harsh and has caused severe financial harm, particularly to the hardwood industry.

“But the bad news is that there is no resolution to the Chinese tariffs already impacting the wood products industry—and the U.S. Trade Representative has indicated it could take years to resolve the differences with China,” Thomas wrote.

TO SEE THE FULL ARTICLE IN THE WINTER 2020 F&W FORESTRY REPORTSUBSCRIBE NOW»

Interest In Forest-Generated Carbon Offset Markets Growing

Interest In Forest-Generated Carbon Offset Markets Growing

In 2008, the F&W Forestry Report reported on the newly developing forest-generated carbon offset market.  At the time, the market was fairly young but the Chicago Climate Exchange (CCX) was buying and selling carbon credits (or “offsets”) on a voluntary basis and F&W was a CCX-approved carbon aggregator.  But a lack of national policy on climate change and low market activity eventually led the CCX to cease trading carbon.

With worldwide carbon emissions continuing to trend upward, there has been a renewed interest from both public and private sectors to increase the capture of atmospheric carbon through active forest management.

In the winter newsletter, F&W’s John Godbee and Stephen Logan discuss how forest-generated carbon sequestration programs continue to evolve and the advantages, disadvantages, risks, and rewards to forest landowners wanting to participate in the market.

TO SEE THE FULL ARTICLE IN THE WINTER 2020 F&W FORESTRY REPORTSUBSCRIBE NOW»

U.S. Wood Pellet Demand Thriving

U.S. Wood Pellet Demand Thriving

Foreign demand for U.S. wood pellets continues to climb, with exports more than doubling between 2013 and 2018, growing from 2.99 million metric tons to 6.02 million, according to data from the USDA Foreign Agricultural Service.

This demand has led to an explosion of wood pellet production facilities in the U.S. over the last decade, particularly in the Southeast.  With global demand for wood pellets projected to continue on this steep upward trajectory, manufacturers are reacting by expanding production capacity and investing in additional mills.

Currently most U.S. wood pellet exports are destined for Europe, primarily the UK, but there is growing demand from Asia for pellets, which is expected to grow exponentially over the next three years.

TO SEE THE FULL ARTICLE IN THE WINTER 2020 F&W FORESTRY REPORTSUBSCRIBE NOW»

USDA Announces Block Grants For Hurricane Damage

USDA Announces Block Grants For Hurricane Damage

In November, the USDA announced $800 million in block grants to Florida, Georgia, and Alabama to provide assistance to landowners in disaster-designated areas affected by hurricanes Michael and Florence.

While the individual states will determine how the funds are distributed, block grant funding is intended to cover losses for timber, poultry, cattle, and necessary expenses related to losses of horticultural crops and present value losses associated with pecan production.

Florida Agricultural Commissioner Nikki Fried said the funds will be used to compensate timber producers for lost value of their trees damaged by Hurricane Michael in 2018.  The state departments of agriculture in Georgia and Alabama are still working out the details on how to allot the funding in their states.

Click here for more information on the Florida program.  https://www.fdacs.gov/News-Events/Press-Releases/2019-Press-Releases/Commissioner-Nikki-Fried-Announces-380-Million-in-USDA-Disaster-Relief-for-Florida

TO SEE THE FULL ARTICLE IN THE WINTER 2020 F&W FORESTRY REPORTSUBSCRIBE NOW»

The F&W Forestry Report is published quarterly for our clients reporting on the latest market conditions, timber prices and legislation affecting forestry.

Winter 2016

Spring 2016

Winter 2015

Please note that archived newsletters lag
one year behind current publications.

Fountains Forestry Changes
Name to F&W

read_more

F&W Establishes Thomasville Office

read_more

For media inquiries, contact Bates Associates: 770-451-0370, bbates@batesassociates.net